diff --git a/packages/amazonq/.changes/next-release/Bug Fix-54e46358-d60f-492b-af5c-b23f4aa2b1b8.json b/packages/amazonq/.changes/next-release/Bug Fix-54e46358-d60f-492b-af5c-b23f4aa2b1b8.json
new file mode 100644
index 00000000000..2235a228776
--- /dev/null
+++ b/packages/amazonq/.changes/next-release/Bug Fix-54e46358-d60f-492b-af5c-b23f4aa2b1b8.json	
@@ -0,0 +1,4 @@
+{
+	"type": "Bug Fix",
+	"description": "amazon q inline: skip indexing when no workspace folders are found"
+}
diff --git a/packages/core/src/amazonq/lsp/lspController.ts b/packages/core/src/amazonq/lsp/lspController.ts
index 69c570264cd..cf4da0617ca 100644
--- a/packages/core/src/amazonq/lsp/lspController.ts
+++ b/packages/core/src/amazonq/lsp/lspController.ts
@@ -23,14 +23,6 @@ import { isWeb } from '../../shared/extensionGlobals'
 import { getUserAgent } from '../../shared/telemetry/util'
 import { isAmazonInternalOs } from '../../shared/vscode/env'
 
-function getProjectPaths() {
-    const workspaceFolders = vscode.workspace.workspaceFolders
-    if (!workspaceFolders || workspaceFolders.length === 0) {
-        throw new ToolkitError('No workspace folders found')
-    }
-    return workspaceFolders.map((folder) => folder.uri.fsPath)
-}
-
 export interface Chunk {
     readonly filePath: string
     readonly content: string
@@ -322,12 +314,13 @@ export class LspController {
     async buildIndex(buildIndexConfig: BuildIndexConfig) {
         getLogger().info(`LspController: Starting to build index of project`)
         const start = performance.now()
-        const projPaths = getProjectPaths()
+        const projPaths = (vscode.workspace.workspaceFolders ?? []).map((folder) => folder.uri.fsPath)
+        if (projPaths.length === 0) {
+            getLogger().info(`LspController: Skipping building index. No projects found in workspace`)
+            return
+        }
         projPaths.sort()
         try {
-            if (projPaths.length === 0) {
-                throw Error('No project')
-            }
             this._isIndexingInProgress = true
             const projRoot = projPaths[0]
             const files = await collectFilesForIndex(
@@ -340,7 +333,7 @@ export class LspController {
                 (accumulator, currentFile) => accumulator + currentFile.fileSizeBytes,
                 0
             )
-            getLogger().info(`LspController: Found ${files.length} files in current project ${getProjectPaths()}`)
+            getLogger().info(`LspController: Found ${files.length} files in current project ${projPaths}`)
             const config = buildIndexConfig.isVectorIndexEnabled ? 'all' : 'default'
             const r = files.map((f) => f.fileUri.fsPath)
             const resp = await LspClient.instance.buildIndex(r, projRoot, config)